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Multiplexes and single-screen cinema exhibitors may not immediately lose footfalls as Reliance Jio, which has already upended India’s telecom industry leader-board, begins its premium First Day First Show (FDFS) service that promises to revolutionise film viewing.

Subscribers availing this bespoke, premium service can watch new films from the comfort of their drawing rooms. Analysts point out that FDFS is available with three different monthly plans ranging from ₹2,499 to ₹8,499.

Given such pricing, the demand for FDFS would come from an extremely small base of elite and moneyed subscribers. Analysts point out that there are slim chances of multiplex footfalls declining immediately. Besides pricing, content is the ultimate crowd puller, and good content-oriented films have drawn massive audiences at multiplexes.

Given such pricing, the demand for FDFS would come from an extremely small base of elite and moneyed subscribers. Analysts point out that there are slim chances of multiplex footfalls declining immediately. Besides pricing, content is the ultimate crowd puller, and good content-oriented films have drawn massive audiences at multiplexes.

This is, of course, not the first time that film exhibitors have faced disruptive changes that threatened to put a question mark on their survival. A long spell of bad movies in the 1980s had posed a challenge to theatre owners. Later, VCRs and cable television were billed as potential challengers to the film-exhibition business.

With the advent of streaming platforms in the past two years, some in the industry believed that theatre footfalls might decline. That hasn’t happened yet. An ETIG analysis of the financial performance of multiplexes PVR and Inox Leisure shows that there has been reasonably good growth in revenue per screen before and after FY14 — the year that marks the entry of big streaming platforms.

Revenue per screen for Inox increased to ₹2.9 crore in FY19 from ₹2.6 crore and ₹2.4 crore in FY14 and FY09, respectively. Similarly, for PVR, revenue per screen in FY09 stood at ₹3.2 crore, which fell slightly to ₹3.1 crore in FY14 and then increased to ₹4 crore in FY19.

In the past one month, after the announcement of JioFiber services, the stock of PVR has gained 9 per cent, while the Inox stock has been flat.